Formation is the process by which a startup is formed and certain decisions need to be made in connection with the formation as discussed in this section. Many startup founders are skilled at developing products and services, recruiting employees and selling, and very poor at structuring and other mundane formation tasks.

Lack of attention to detail to formation matters can jeopardize intellectual property rights, lead to disputes among co-founders and increase legal fees to sort out the mess. We recommend that the founder or founders who have attention to detail focus on the formation issues.